Church Money Purchase Pension Plans

A church Money Purchase Pension Plan is a defined contribution plan in which the amount of contributions each employee receives from the employer is in proportion to the employee's wages. A church plan is not subject to certain ERISA requirements, such as annual 5500 reporting.  Unlike profit sharing plans, these contributions are mandatory every year, regardless of profits or revenue.

Who can participate?

All employees are eligible to participate unless the plan specifically excludes them.

Types of plan contributions

Employer contributions are required.

Eligibility

The employer has flexibility in determining which employees are eligible. As an example, an employer may impose age and/or service requirements before an employee can participate in the plan.

Potential Tax advantages

Benefits are generally not taxable until distributed. Retirees who are ministers may have retirement benefits designated as a tax-free housing allowance within legal limits.

To learn more about the retirement plans available to your specific organization, email us or call us at 1-888-98-GUIDE (1-888-984-8433).